Among megas, that number jumps to 85.4%Company Matches on the Rise

There has been a rather notable increase, in the past year, in the number of retirement plans
offering a company match, the 2016
PLANSPONSOR Defined Contribution (DC) Survey indicates. Among
all plan sizes, 74.7% offer a match, up
from 71.8% in 2015. However, there
is a spread of 18 percentage points
between micro and mega plans when
it comes to this benefit; matches are
offered at 67.0% of micro plans but

85.4% of megas.

Although stretch matches are nowbeing rethought so as to encourageincreased deferrals, the PLANSPONSORsurvey still asks for sponsors to statetheir match in relation to a 6% deferralrate. As for the match amount mostprevalent, it falls between 51% and 99%of the first 6% of an employee’s salary—selected by 29.1% of plans. That isfollowed by 50% of the first 6% of salary,selected by 16.5% of plans. Nearly one ofevery 10 sponsors— 9.7%—contribute100% of the first 6% of salary.

In terms of how frequently the
matches are made, 71.9% of plans
make them weekly, also indicating
the sponsoring companies pay their
employees every week. The next most
common frequency is annually ( 13.7%).
The other possibilities were chosen far
less often: every other week ( 5.0%),
twice a month ( 2.7%), quarterly ( 2.6%)
and monthly ( 2.4%). —Lee Barney

data points

Does Your Organization Offer a Matching Contribution to Participant Accounts?

Overall Micro Small Midsize Large Mega

Yes 74.7% 67.0% 76.8% 78.9% 81.8% 85.4%

No 24.8%
32.0% 23.1% 20.9% 18.2% 13.9%

Don’t know 0.5%
1.0% 0.1% 0.2% 0.0% 0.7%

How Frequently Are Matching Contributions Made to Plan Participants?

Overall MICRO Small Midsize Large Mega

Annually 13.7%
14.1% 14.9% 14.6% 9.7% 11.0%

Quarterly 2.6%
2.1% 3.0% 2.9% 1.9% 3.1%

Monthly 2.4%
2.9% 2.8% 1.9% 1.6% 1.3%

Twice a month ( 24 times a year) 2.7%
3.9% 2.4% 2.4% 1.6% 1.8%

Biweekly ( 26 times a year) 5.0%
5.7% 4.7% 3.8% 7.2% 3.1%

Weekly 71.9% 69.5% 70.5% 73.4% 76.9% 78.1%

Other (please specify) 1.6%
1.8% 1.8% 1.0% 1.2% 1.8%

Source: 2016 PLANSPONSOR Defined Contribution Survey
If You Provide a Match, What Is the Formula?